What is a lock-up? Does that mean if I give them $5k for the deposit I can't get that money for 1 year?

How do payouts work? When would I be getting my 80,90,95% profit paid to me?

I have no problem just giving these firms 5k, if I can use their leverage for 1 or 2 months and get enough money to be a PDT. So that is why I have these questions.

Thanks

BNX

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You need to read the contracts of the individual firms you are considering in terms of how long the lock-up period is and how often they do payouts. A one-year lock-up would mean you would not be able to get your deposit back for 1 year.

2. Payouts vary by firms, and some will let you withdraw once a month, whereas others will let you withdraw bi-weekly.

3. How do you plan getting enough money for PDT status within a few months with a 5k original capital contribution? That would require you to make a 500% return! Here is the definition from Wikipedia:

"Pattern day trader is a term defined by the SEC to describe any trader who buys and sells a particular security in the same trading day (day trades), and does this four or more times in any five consecutive business day period. A pattern day trader is subject to special rules, the main rule being that in order to engage in pattern day trading the trader must maintain an equity balance of at least $25,000 in a margin account."

BNX....if you have the money to be a qualified day-trader, why would you lock up $5k in a prop shop? I know you indicated leverage as a reason, but if the company you're looking at is giving more then 4-to-1 on your money, then their days may be numbered and you are risking the deposit and any other monies sitting with them. There's a reason the rules state that day-traders need $25k in equity, so logic would dictate that getting this kind of leverage in a non-registered shop is ridiculous!

Do yourself a favor and get the 4-to-1 leverage legally in a fully disclosed account at a legit firm!